The government intervention in foreclosures and mortgage modification regulations increases the risk for the lenders. In order to protect themselves against the added risk lenders will increase the premium in the interest rates they charge to homeowners.
What the administration should really do is to convince the population that housing should be bought only if one can afford it. Subsidizing housing through various nonsensical programs has pushed all of us in a financial abyss. It is the time to recognize the policy mistakes and start all over again.
Why? Because the markets eventually win. If it is a bad idea we will end up paying dearly, as we are now.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes. To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/. You can review The Peter Dag Portfolio, free of charge of course. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
George Dagnino, PhD
No comments:
Post a Comment